The dollar weakens and the exchange rate with the euro reaches its highest level since last May 7th. In the wake at new measures announced last night by the Federal Reserve, mid-morning the single currency is traded at 1,3037 US bills. The euro also strengthened against the Japanese currency, to 101,16 yen, from 100,62 yesterday evening. On the other hand, the euro-sterling exchange rate was stable, while the euro-franc reached 1,2175, from 1,2145 yesterday.
Operators see some further upside for the euro-dollar relationship in the short term, even if large appreciation movements seem to be excluded. “I don't have a feeling this move will continue, all I can imagine is this little bet above the 1,30 mark,” said Akira Hoshino of Bank of Tokyo-Mitsubishi Ufj.
